PROVISION FOR BUSINESS RESTRUCTURING

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 2 - PROVISION FOR BUSINESS RESTRUCTURING

As a result of the business down turn we were experiencing in the fourth quarter of 2008 and the uncertain business outlook at that time, restructuring actions were taken to reduce expenses. This resulted in restructuring charges, primarily related to severance, of $542,000 for the year 2008. We took additional actions in 2009 totaling $203,000 to flatten and streamline the organization as well as reduce costs by decreasing the size of our Board and abandoning a portion of our building space. At December 31, 2010, restructure costs of $58,000 remained accrued, which in February 2011 were incorporated in a lease amendment and no restructure amounts remain accrued at December 31, 2011.

An analysis of the restructuring is as follows:

	Reserve Balance 12/31/09		2010 Expense		2010 Payments/ Write-Offs		Reserve Balance 12/31/10		2011 Expense		2011 Payments/ Write-Offs		Reserve Balance 12/31/11
(in thousands)
Downsizing US operations:
Facility & other costs	$	158	$	-	$	100	$	58	$	-	$	58	$	-
Total	$	158	$	-	$	100	$	58	$	-	$	58	$	-